Multiple choice

The principal liability of a Joint Stock Bank relates to

  1. it's investment abroad

  2. it's investment at home

  3. repayment of it's customer's deposits

  4. it's requirements to make special deposits when requested
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

A Joint Stock Bank's primary obligation is to repay deposits to its customers. Deposits form the main source of funds for banks, and the bank's core liability is to return these funds, either on demand or at agreed maturity. This is why deposit insurance and capital adequacy are critical regulatory requirements.

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